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Plant Colapse Sparks Dispute
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Business New Haven
2/5/2001
By: BNH
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Milford - A $5 million insurance payment has sparked a second lawsuit between the owner of a 544-megawatt electric plant under construction and the builder of the plant.
The collapse of a steel structure at the plant site off Bic Drive last Feb. 2 killed two men and seriously injured a third. The accident is the impetus for both lawsuits. In the suit, filed in December in Milford Superior Court, Black & Veatch Corp. of Kansas City, Mo., seeks an injunction to force Milford Power Co. to turn over the $5 million insurance check issued to both companies to cover work delays fro the fatal accident.
The Boston-based Milford Power Co. filed suit in September seeking at least $4.5 million in penalties from Black & Veatch for missed construction deadlines as a consequence of the accident. The U.S. Occupational Safety and Health Administration (OSHA) fined Black & Vaetch $7,000 for removing bracing from the structure prematurely. The company is appealing.
Black & Vaetch holds the policy from the Federal Insurance Co. that paid the $5 million, but Milford Power Co. and KBC Bank of New York, which is financing the project, are named as additional insured.
The contractor states in the suit that it has suffered insured losses of $13 million and that the disputed payment is an advance against its claim.
Milford Power Co. and its lending bank are blocking release of the money, the suit claims, until they get assurances that their losses will also be covered.
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